Bases for segmenting a consumer market, applied to a millet snack and wireless earphones

Bases of segmentation of the consumer market

Market segmentation divides a large, varied market into smaller groups of buyers with similar needs, characteristics or behaviour, so that each group can be served with a suitable marketing mix. Consumer markets are usually segmented on four main bases, often used in combination.

1. Geographic. Nations, regions, states, cities or rural and urban areas, climate and population density. Tastes, incomes and access differ by place; for example, demand for woollens is regional and seasonal.
2. Demographic. Age, gender, family size and life-cycle stage, income, occupation, education, religion and generation. These variables are easy to measure and closely linked to needs, so they are the most widely used.
3. Psychographic. Social class, lifestyle (health-conscious, outdoor, home-centred) and personality. People with the same demographic profile may still buy very differently because of their lifestyle and values.
4. Behavioural. Occasion of purchase, benefits sought (economy, convenience, status, health), user status (non-user, first-time, regular), usage rate (light, heavy), loyalty status and readiness to buy. Many marketers consider behaviour the best starting point, because it relates directly to buying.

For segments to be useful they must be measurable, large enough to be profitable, reachable, different from one another and actionable.

(i) Millet-based snack

• Psychographic (lifestyle): health- and fitness-conscious consumers who look for better-for-you snacks.
• Behavioural (benefit sought): buyers who want high fibre, gluten-free or diabetic-friendly food; occasions such as office tea-time or school tiffin.
• Demographic: urban working adults aged about 22 to 45 with middle and higher incomes, and parents buying for children.
• Geographic: metro and tier-1 cities first, through modern trade and quick-commerce, with regional flavours later.

Suitable bases: psychographic and behavioural, supported by demographic and geographic variables.

(ii) Wireless ear-phone

• Demographic: students and young professionals aged roughly 16 to 35; income groups for budget, mid and premium models.
• Behavioural (benefit and usage): music lovers wanting sound quality, gamers wanting low delay, fitness users wanting sweat resistance, office users wanting call clarity and noise cancellation; heavy versus light users.
• Psychographic: tech-savvy, style-conscious buyers who see earphones as a fashion accessory.
• Geographic: urban and online buyers first, since sales are largely through e-commerce.

Suitable bases: demographic and behavioural, supported by psychographic variables.

Conclusion

No single basis is enough; marketers combine bases so that each segment can be described clearly and reached with a fitting product, price, channel and message. The same product may need different bases in different markets, and the bases should be reviewed as buyers' habits change.